China — Export Controls

China's export control system rests on the Export Control Law of the People's Republic of China (中华人民共和国出口管制法), adopted by the Standing Committee of the National People's Congress on October 17, 2020, and effective December 1, 2020. The law establishes a unified legal framework governing the export of items that implicate national security, nonproliferation obligations, or other strategic interests, consolidating authority over six categories of administrative regulations that had been in force since the late 1990s.

## Controlled items under Article 2

The Export Control Law does not reproduce a detailed control list in its text; instead, it delegates authority to the State Council and MOFCOM to publish and adjust control lists of specific items. The State Council white paper China's Export Controls (December 29, 2021) describes the law as establishing "a basic institutional framework, and unified rules for export control policies, a control list, temporary controls, a restricted name list, and supervision." The law applies to:

• Dual-use items (两用物项) — goods, technology, or services that have both civilian and military applications;
• Military items (军品) — equipment, technology, or services designed or modified for military purposes;
• Nuclear items (核) — materials, equipment, software, and related technologies with nuclear applications; and
• Other items related to fulfillment of international obligations such as nonproliferation and protection of national security.

The law defines "export" broadly to encompass outbound trade, gifts, exhibitions, scientific and technological cooperation, provision of assistance or services, and any other transfer of controlled items from within China to other countries or regions. Article 45 provides that transit, transshipment, through shipment, re-export, and movement from bonded areas or export processing zones are governed by applicable provisions of the law.

## Administering agencies

The Ministry of Commerce (MOFCOM, 商务部) was the principal drafter of the Export Control Law at the instruction of the State Council and serves as the lead administering agency. According to the October 2020 MOFCOM press conference, MOFCOM published a draft law online from June to July 2017 for public comment, receiving 252 pieces of feedback from foreign embassies, businesses, chambers of commerce, business associations, and law firms both domestic and foreign; reasonable suggestions were incorporated during the legislative process. The law was formally adopted at the 22nd session of the 13th National People's Congress Standing Committee on October 17, 2020, and came into force on December 1, 2020.

The State Council white paper describes a "sound working mechanism" among multiple departments for export control. MOFCOM coordinates with other relevant State Council departments depending on the category of controlled item:

• Nuclear dual-use items: regulated by MOFCOM jointly with the China Atomic Energy Authority (CAEA, 国家原子能机构);
• Dual-use biological items: regulated by MOFCOM jointly with the Ministry of Agriculture and Rural Affairs and the National Health Commission, among others as required;
• Dual-use items related to certain chemicals: regulated by MOFCOM;
• Dual-use missile-related items: regulated by MOFCOM jointly with the State Administration of Science, Technology and Industry for National Defense (SASTIND) and the Equipment Development Department of the Central Military Commission, among others as required;
• Commercial cryptography: regulated by MOFCOM jointly with the State Cryptography Administration, as stipulated by the Cryptography Law.

The General Administration of Customs (GACC, 海关总署) enforces export control compliance at the border.

## Antecedent regulations

Before the Export Control Law, China administered export controls through six distinct sets of administrative regulations promulgated in the late 1990s. According to the October 2020 MOFCOM press conference, these included:

• Regulations on the Administration of Controlled Chemicals (易制毒化学品管理条例);
• Regulations on the Control of Nuclear Export (核出口管制条例);
• Regulations on the Control of Nuclear Dual-Use Items and Related Technologies Export (核两用品及相关技术出口管制条例);
• Regulations on Export Control of Dual-Use Items (implied in the press conference's reference to "dual-use" regulations);
• Regulations on Export Control of Missiles and Missile-Related Items (implied in the press conference's reference to "missile" regulations); and
• Regulations on Military Export (implied in the press conference's reference to "military" regulations).

The MOFCOM spokesperson stated that "a legal framework for the control of nuclear, biological, chemical, missile, and military export has since been in place." The Export Control Law raises this framework to a higher statutory level. The State Council white paper notes that "to make sure that the Export Control Law is effectively implemented, China's authorities have introduced, revised, and rescinded supporting administrative regulations and departmental rules."

## Licensing, compliance, and reciprocal measures

Exporters must obtain a license (许可证) from MOFCOM or the relevant competent authority before exporting any controlled item. The white paper states that MOFCOM "will finalize and publish the control list when appropriate, in accordance with law." The law contemplates facilitation measures — including general licenses — for exporters that establish effective internal compliance programs, though the white paper does not detail how often such facilitation has been granted.

Article 48 of the Export Control Law provides that where any country or region abuses export control measures to endanger China's national security and interests, China may — based on the actual situation — take reciprocal measures (对等措施) against that country or region. The white paper emphasizes that China "takes a just and reasonable principled position and implements export control measures in a prudential and moderate manner" and that the law was formulated "drawing on China's own experience in export controls and taking into account standard international practices."

The law also applies to re-exports of items of Chinese origin. Article 45 confirms that transit, transshipment, through shipment, and re-export of controlled items are governed by applicable provisions of the law, though the statute does not specify the extraterritorial reach of enforcement mechanisms against foreign parties that re-export Chinese-origin controlled items without permission.

Source: Export Control Law of the People's Republic of China, Presidential Order No. 58 (October 17, 2020) Source: Full Text: China's Export Controls, State Council Information Office white paper (December 29, 2021) Source: Regular Press Conference of the Ministry of Commerce (October 22, 2020)

China administers dual-use export controls through the Export Control List of Dual-Use Items of the People's Republic of China (中华人民共和国两用物项出口管制清单), first published by MOFCOM on November 15, 2024, effective December 1, 2024, in conjunction with the State Council's Regulations on Export Control of Dual-Use Items (Decree No. 792, October 19, 2024). The List consolidates more than ten previously dispersed control catalogues for nuclear, biological, chemical, and missile-related dual-use items into a unified framework, and introduces a five-character coding system modeled on the U.S. Export Administration Regulations ECCN architecture and the EU dual-use regime.

## Definition of dual-use items

Article 2 of the 2024 Regulations defines "dual-use items" as goods, technologies, and services that may be used either for civil purposes or for military purposes or to contribute to an increase in military potential, especially to design, develop, produce, or use weapons of mass destruction and their means of delivery. The definition encompasses both tangible goods and intangible technology transfers, including transfers of technical data or information from a Chinese company's employees to non-Chinese entities wholly within China — a deemed-export concept analogous to U.S. EAR § 734.13(b).

## List structure: ten sectors, five categories, and the export control code

The 2024 Control List organizes dual-use items into ten industry sectors (nuclear, chemical, biological, missile-related, advanced materials, electronics, computers, telecommunications, sensors, marine, and aerospace/propulsion) and five categories (goods, materials, software, technology, and services). Each controlled item is assigned a five-character export control code structured as follows:

1. First digit: Industry sector (e.g., 0 = nuclear, 1 = materials, 2 = materials processing, 3 = electronics, 4 = computers, 5 = telecommunications, 6 = sensors, 7 = navigation/avionics, 8 = marine, 9 = aerospace/propulsion)
2. Second digit: Item category within that sector (A = equipment/assemblies/components, B = test/inspection/production equipment, C = materials, D = software, E = technology)
3. Third digit: Reason for control (national security, nonproliferation obligations, regional stability, etc.)
4. Fourth and fifth digits: Sequential item number within that category

Unlike the U.S. EAR, China does not maintain a general catch-all designation (no equivalent to EAR99) for items not specifically enumerated on the Control List. Export control applies only to items that affirmatively match a listed entry; items not on the List are not subject to licensing under the dual-use regime (though military items, temporary controls, or end-user/end-use catch-alls may apply separately).

MOFCOM confirmed in a November 2024 press conference that the initial December 2024 Control List did not expand the scope of controlled items or adjust technical control parameters; its purpose was consolidation, creation of the coding system, and clarification of application. The List contains approximately 700 to 900 dual-use items, significantly fewer than the U.S. Commerce Control List (over 3,000) or EU dual-use regime, reflecting China's stated policy of rationality, prudence, and moderation in export control.

## Reference to customs HS codes

Prior to December 2024, China's export control catalogues cross-referenced items to Harmonized System (HS) codes for customs administration. The new Control List establishes a standalone classification system that no longer ties directly to HS codes, recognizing that HS commodity codes cannot accurately describe controlled technology or software. Exporters must classify goods, technology, and services by performance parameters, technical specifications, and end-use rather than by tariff classification alone.

## Technology and software exclusions

The Control List clarifies that certain categories of technology and software are not subject to control even when the underlying goods are listed:

• Technology is excluded if it is (i) in the public domain, (ii) used in fundamental research, or (iii) necessary knowledge for ordinary patent applications.
• Software is excluded if it is (i) in the public domain, or (ii) generally available to the public by retail sale without restriction or designed for installation by the user without further substantial support.
• Operation technology: An export license for any controlled item covers the minimum technology necessary for the installation, operation, maintenance, or repair of that item for the same end-user (analogous to EAR § 740.9(a)(1)). The Control List does not further define "minimum technology," leaving practitioners to apply a reasonable-necessity standard in the context of the licensed transaction.

## Exporter classification obligation and MOFCOM consultation

Under Article 5 of the 2024 Regulations, exporters must understand the performance indicators, main uses, and other relevant details of the goods, technologies, or services they intend to export to determine whether they fall under dual-use items. If the exporter is unable to make that determination, the exporter may submit a consultation request to MOFCOM providing (i) the performance indicators, (ii) the main uses, and (iii) the reasons why classification is uncertain. MOFCOM does not publish a binding-ruling program equivalent to CBP classification rulings or EU Binding Tariff Information; guidance is case-by-case and not publicly docketed.

## Amendments and temporary controls

MOFCOM may amend the Control List from time to time. Article 7 of the 2024 Regulations provides that MOFCOM, upon approval by the State Council (or the State Council and Central Military Commission), may impose temporary controls on goods, technologies, or services not listed on the Control List if necessary to safeguard national security or fulfill nonproliferation obligations. Each temporary control may last up to two years and may be extended twice; after that, items must either be added to the permanent List or the control must lapse. Recent temporary controls have included gallium, germanium, graphite, antimony, superhard materials, and rare-earth elements announced via separate MOFCOM/GACC notices.

## Practical classification workflow

A practitioner classifying an item for China export control should:

1. Obtain the item's technical specifications (performance parameters, materials composition, technical capabilities);
2. Review the ten-sector structure and identify the most likely sector based on primary function;
3. Match specifications against the technical control parameters in the List entries within that sector;
4. Check whether a technology or software exclusion applies;
5. Verify whether MOFCOM has issued a temporary-control announcement covering the item (monitor MOFCOM and GACC announcements at english.mofcom.gov.cn);
6. If uncertain, document the analysis and submit a written consultation to MOFCOM under Article 5 of the Regulations.

The Control List is maintained and published by MOFCOM; updates are announced via MOFCOM/GACC joint notices and reflected in amendments to the List posted on MOFCOM's export-control portal (exportcontrol.mofcom.gov.cn, Chinese only).

Source: Regulations on Export Control of Dual-Use Items, State Council Decree No. 792 (October 19, 2024), effective December 1, 2024 Source: MOFCOM Regular Press Conference (November 15, 2024) — Control List publication announcement Source: MOFCOM Spokesperson's Remarks on China's Recent Economic and Trade Policies and Measures (October 12, 2025) — Control List scope and item count

Chinese exporters of dual-use items listed on the Control List or subject to temporary control must obtain an export license from the Ministry of Commerce (MOFCOM) before shipment, under the Regulations on Export Control of Dual-Use Items (State Council Decree No. 792, adopted September 18, 2024, effective December 1, 2024). The Regulations abolish the prior registration requirement for exporters that had applied to certain categories (e.g., nuclear dual-use items); an entity no longer needs to pre-register as an exporter of dual-use items but may apply directly for a license.

## Three license types

The 2024 Regulations establish three authorization mechanisms. Which type an exporter may apply for depends on the exporter's compliance track record, the nature of the transaction, and the end user.

1. Single license (also called individual or one-time license): Permits export of a specified dual-use item to a single end user. The validity period may not exceed one year. When the export is completed within the validity period, the single license automatically becomes invalid. This is the standard mechanism; any qualified exporter may apply.

2. General license: Permits multiple exports of specific dual-use items to one or more end users within the scope, validity period, and conditions specified in the license. The maximum validity period is three years. Eligibility is limited to exporters who have (i) established an internal compliance system for dual-use export control that is operating effectively, (ii) relevant prior export records, (iii) stable export channels, and (iv) consistent end users. Exporters may reference the Guiding Opinions on Establishing an Internal Compliance Mechanism for Export Control by Exporters of Dual-Use Items (MOFCOM, April 28, 2021) for compliance-system design.

Multiple law-firm and trade-compliance analyses of the 2024 Regulations report that exporters with any of the following disqualifying circumstances may not apply for a general license: (a) the entity has been criminally punished for violations of dual-use export-control regulations, or its directly responsible managers or personnel have been so punished; (b) the entity has received severe administrative penalties for export-control violations within the past five years; (c) the entity is a wholly foreign-owned enterprise, representative office, or branch established in China by a foreign organization or individual listed on the Control List; or (d) other circumstances specified by MOFCOM. Unable to confirm the full scope and precise language of these disqualifications from the official primary-source text of Decree 792 as of 2026-06-01, though the MOFCOM November 2024 press conference confirms that general licenses are available only to exporters with "a well-established and effectively managed internal compliance system" and "stable export channels and consistent end users."

3. Registration-based export certificate (also called export credential or simplified authorization): Permits export of certain dual-use items by registration and submission of specified information to MOFCOM before each shipment, without the full license review required for single or general licenses. This mechanism is reported to apply to low-risk scenarios such as (a) re-export to the original end user of items temporarily imported into China for repair, testing, or exhibition; (b) temporary export for overseas repair or exhibition, to be re-imported; and (c) other circumstances prescribed by MOFCOM. The same disqualifying factors that bar general-license eligibility are reported to apply. Unable to confirm the full list of eligible scenarios and disqualifying factors from the primary-source text as of 2026-06-01.

## Application documents for a single license

To apply for a single license, the exporter must submit to MOFCOM:

• Export application form (uniform format produced by MOFCOM);
• Identification certificates of the applicant's legal representative, general manager, and agent;
• Copies of the export contract or agreement, or other supporting documents evidencing the transaction;
• Technical description or test report of the dual-use item being exported;
• Documents proving the end user and end use of the dual-use item (end-user and end-use certification, or EUC, issued by the end user); and
• Any other materials required by MOFCOM.

The end-user certification must commit that the end user will not change the final use of the dual-use items or transfer them to any third party without MOFCOM permission. The EUC requirement is consistent across the 2024 Regulations and earlier practice under the Export Control Law.

## Application documents for a general license

To apply for a general license, the exporter must submit all the documents required for a single license, plus:

• Description of the operation of the internal compliance system for export control of dual-use items;
• Description of the application and use of dual-use export licenses (compliance track record); and
• Description of the export channels and end users of dual-use items.

These additional documents allow MOFCOM to assess whether the exporter meets the "well-established and effectively managed internal compliance system" and "stable export channels and consistent end users" eligibility criteria.

## Review period: 45 working days

Upon receiving the application form and required documents, MOFCOM shall review the application — independently or in conjunction with relevant national departments (China Atomic Energy Authority for nuclear dual-use items, State Administration of Science, Technology and Industry for National Defense for missile-related items, relevant ministries for biological or chemical items) — and approve or deny the license within 45 working days. The 45-working-day period is a standard review timeline applicable to both single licenses and general licenses.

If MOFCOM deems it necessary to conduct further investigation or consult experts under the expert advisory mechanism established by the Regulations, the review period may be extended beyond 45 working days; MOFCOM will notify the applicant. Multiple trade-compliance analyses report that if MOFCOM determines the export may significantly affect national security, it must consult with and obtain additional approvals from the State Council or the State Council and the Central Military Commission, and that the 45-working-day standard does not bind these elevated reviews. Unable to confirm the precise procedural rule and timeline for State Council or CMC approvals from the primary-source text as of 2026-06-01.

## Exports to Watch List or Control List entities

The 2024 Regulations introduce a Watch List mechanism for foreign importers or end users who fail to cooperate with MOFCOM's end-user and end-use verification procedures, and a Control List (also called List of Entities under Export Control) for entities that have violated end-user or end-use control requirements or that pose WMD proliferation risks. Trade-compliance analyses report that:

• Exporters may not apply for a general license or use the registration-based export certificate if the intended recipient is on the Watch List; only a single license is available, and the application will require additional risk assessment and compliance undertakings, with no set timeline for approval.
• Exporters seeking to supply dual-use items to entities on the Control List must obtain a license that MOFCOM will issue only in exceptional circumstances.

Unable to confirm the full scope of these restrictions and the procedural standards for Watch List and Control List applications from the primary-source text of Decree 792 as of 2026-06-01. MOFCOM's February 2025 press conference confirms that "the Chinese government will approve application for export license that complies with the relevant regulations" and that China's export controls are not export bans.

## Customs declaration and post-approval obligations

Once the license is issued, the exporter must:

• Export dual-use items only within the scope, conditions, and validity period specified in the license;
• Present the export license to the General Administration of Customs (GACC) when filing the customs declaration;
• Indicate in the customs declaration whether the goods are controlled items, and if so, specify the dual-use item control code (the five-character code from the Control List published by MOFCOM on November 15, 2024);
• Report to MOFCOM the actual export details, including transportation, arrival, installation, and usage of the items.

GACC may question the declared information; goods for export will not be released during the questioning period. The exporter must ensure that the end user complies with the end-use commitments made in the EUC.

Source: Regulations on Export Control of Dual-Use Items, State Council Decree No. 792 (October 19, 2024), effective December 1, 2024 Source: MOFCOM Regular Press Conference (November 15, 2024) — Control List publication and licensing framework Source: MOFCOM Regular Press Conference (February 6, 2025) — licensing and Unreliable Entity List

Chinese exporters must obtain a license before exporting goods, technologies, or services when they know or should know that the items will be used for purposes prohibited by China's export control regime — even when the items are not listed on the Control List. This catch-all obligation is a core pillar of the Export Control Law of the People's Republic of China, effective December 1, 2020, and is implemented through the Regulations on Export Control of Dual-Use Items (State Council Decree No. 792, effective December 1, 2024) and analogous regulations for nuclear, biological, chemical, missile-related, and military items.

## Statutory basis and the "knows or should know" standard

The Export Control Law establishes that an exporter must apply for a license where the exporter knows or should know that controlled items it intends to export may be used for purposes endangering national security or interests, or for the design, development, production, stockpiling, or use of weapons of mass destruction (WMD) and their means of delivery. The Ministry of Foreign Affairs confirmed in its August 20, 2003 statement on biological export controls that "China has adopted the catch-all principle" and that "where any unit or individual knows or should know that the dual-use biological agents and related equipment or technologies to be exported will be used by the receiving party directly for" prohibited purposes, a license is required. A 2002 briefing by the Ministry of Foreign Affairs on missile controls similarly stated that "the Regulations reflect the 'catch-all' principle in export control where there is a risk."

The "knows or should know" standard imposes an affirmative obligation on exporters to investigate and verify the identity, reliability, and stated end-use of foreign customers. The exporter cannot turn a blind eye to red flags or rely solely on the customer's representations. The State Council white paper China's Export Controls (December 29, 2021) explains that license review takes into account "factors such as national security and national interests, international obligations, end users and end uses, to ensure compliance with applicable laws and policies."

The catch-all provision applies across all categories of controlled items:

• Dual-use items: goods, technologies, and services that may be used for civil or military purposes or to contribute to an increase in military potential, especially to design, develop, produce, or use WMD and their means of delivery.
• Nuclear dual-use items, biological dual-use items, chemical precursors, missile-related items, and military items, each controlled under separate State Council regulations adopted in the late 1990s and consolidated under the Export Control Law framework from December 1, 2020.

## Prohibited end-uses that trigger the catch-all

A license is required under the catch-all mechanism when an exporter knows or should know the items will be used for any of the following:

1. WMD proliferation: Design, development, production, stockpiling, or use of nuclear, chemical, or biological weapons and their means of delivery. This includes items supplied to entities engaged in WMD programs or to end users in countries subject to United Nations Security Council nonproliferation obligations.

2. Military end-use that may contribute to an increase in military potential: The 2024 Regulations define dual-use items as goods, technologies, and services "that may be used either for civil purposes or for military purposes or to contribute to an increase in military potential, especially to design, develop, produce or use weapons of mass destruction and their means of delivery." An export may require a license if it will be used by military users, for military purposes, or for any other end use that may contribute to enhancing a foreign state's military capabilities, even if the item has primarily civilian applications and is not specifically listed on the Control List.

3. Violations of end-use commitments or re-transfer restrictions: If an exporter knows or should know that the end user intends to re-export, re-transfer, or use the items for purposes other than the declared end-use without MOFCOM permission, the transaction is prohibited.

On March 13, 2026, MOFCOM announced measures targeting Japanese entities and stated that "for Japanese entities which are not listed, if their activities involve Japanese military users, military purposes, or any other end uses that may contribute to enhancing Japan's military capabilities, dual-use item exports to them shall be subject to strict control." This announcement demonstrates that the catch-all obligation applies transaction-by-transaction based on the exporter's knowledge of the end user and end use, not solely based on inclusion of the customer on a published list.

## End-user and end-use certificates (EUCs)

The State Council white paper explains that "China promotes multi-tiered management with the emphasis on end-user and end-use certificates." Generally, an exporter is required to submit the end-use certificate provided by the end user; for export applications presenting a potential risk, the exporter is required to submit end-user and end-use certificates verified or issued by the government agencies of the country or region in which the end user is located, and by the Chinese embassy or consulate in that country or region. China has signed bilateral agreements with Russia and several other countries for mutual issuing of end-user and end-use certificates.

The end-use certificate must commit that the end user will not use the items for purposes other than the declared end-use and will not transfer them to any third party without MOFCOM permission. The white paper states that China has "maintained communication with export control authorities in other countries to strengthen exchanges and cooperation" on end-user and end-use verification.

## The Watch List and Control List (Restricted Namelist)

MOFCOM has announced two types of entity lists that affect licensing availability and review standards:

Watch List: On March 13, 2026, MOFCOM placed 20 Japanese entities "that are unable to be verified the end users or end uses of dual-use items" on the Watch List. MOFCOM stated that "exporters may not apply for general licenses or obtain export certificates through registration procedures when exporting dual-use items to the listed entities" and that "for individual licenses, exporters shall submit a risk assessment report and provide a written commitment that the items will not be used for any purpose that contributes to enhancing Japan's military capabilities." MOFCOM also stated that "the review period for such licenses is not subject to the time limits specified" in the 2024 Regulations and that MOFCOM "will conduct stricter reviews of the end users and end uses for exported dual-use items involving entities on the watch list." Entities on the Watch List may apply for removal "after fulfilling relevant obligations" and MOFCOM may remove them upon verification.

Control List (Restricted Namelist): On the same date, MOFCOM placed 20 Japanese entities "involved in activities enhancing Japan's military capabilities, including Mitsubishi Heavy Industries Shipbuilding Co.," on the Restricted Namelist. MOFCOM stated that "exporters are prohibited from supplying dual-use items to these entities; overseas organizations and individuals are prohibited from transferring or providing dual-use items originating from China to these entities. Ongoing activities of this nature shall cease immediately."

MOFCOM does not publish a consolidated, continuously updated Watch List or Control List on its public website as of June 2026. Designations are announced via MOFCOM spokesperson remarks and MOFCOM/GACC joint notices. Exporters must monitor announcements at english.mofcom.gov.cn and exportcontrol.mofcom.gov.cn.

## Exporter due diligence and verification obligations

Under Article 5 of the 2024 Regulations, exporters must understand the performance indicators, main uses, and other relevant details of the goods, technologies, or services they intend to export to determine whether they fall under dual-use items. The State Council white paper confirms that exporters bear responsibility for verifying the end user and end use to ensure the transaction does not implicate prohibited purposes.

The exporter's due-diligence obligation includes:

• Verifying the identity and legitimacy of the foreign customer.
• Obtaining a written end-use certificate (EUC) from the end user committing that the items will not be used for purposes other than the declared end-use and will not be re-transferred to any third party without MOFCOM permission.
• Reviewing MOFCOM announcements for Watch List and Control List designations before each transaction.
• For high-risk transactions, obtaining government-verified end-user and end-use certificates issued by the end user's government and authenticated by the Chinese embassy or consulate in that country.

If an exporter cannot determine whether an item is controlled or whether an end-use is prohibited, the exporter may submit a written consultation request to MOFCOM under Article 5 of the 2024 Regulations. MOFCOM does not publish a public binding-ruling program analogous to U.S. CBP classification rulings or EU Binding Tariff Information; guidance is case-by-case and confidential.

## Technology transfers within China (deemed exports)

The Export Control Law defines "export" broadly to encompass "outbound trade, gifts, exhibitions, scientific and technological cooperation, provision of assistance or services, and any other transfer of controlled items from within China to other countries or regions." The State Council white paper confirms that the law applies to "any transfer of controlled items" and that review considers "end users and end uses." A Chinese company hosting foreign engineers for technical training, joint development, or technical assistance must verify that the technology to be disclosed is not controlled or obtain a license if the foreign nationals are from countries subject to end-use restrictions or if the technology may be used for prohibited military end-uses. This concept is analogous to the U.S. Export Administration Regulations deemed-export rule (15 C.F.R. § 734.13(b)), though the Chinese law does not use the term "deemed export."

## December 2024 US-targeted controls on gallium, germanium, antimony, graphite, and superhard materials

On December 3, 2024, MOFCOM and the General Administration of Customs announced that "in principle, the export of dual-use items related to gallium, germanium, antimony and superhard materials to the United States is not to be permitted, while stricter examinations on end-users and end-use purposes are to be conducted regarding exports of the dual-use item of graphite to the United States." The announcement states that "any organization or individual from any country or region that, in violation of the above provisions, transfers or provides relevant dual-use items originating in the People's Republic of China to the United States will be held legally responsible."

This December 2024 measure is an application of the catch-all principle targeting a specific destination. Exporters of these items to any country must verify the end user and end use to ensure the items will not be re-transferred to the United States in violation of the MOFCOM/GACC announcement.

## Penalties for violations

The Export Control Law and the 2024 Regulations provide for administrative penalties for violations of the catch-all obligation, including exporting items to prohibited end-users or for prohibited end-uses without a license, or exporting in knowing violation of end-use commitments. The State Council white paper states that "China continues to reinforce its export control enforcement mechanism by expanding methods and sharpening capabilities" and that "the Ministry of Commerce, the Ministry of Public Security, the Ministry of Industry and Information Technology, the General Administration of Customs, and other departments have strengthened collaboration on enforcement." If the violation constitutes a crime under the Criminal Law of the People's Republic of China, the responsible individuals and entities may be subject to criminal prosecution.

Source: Export Control Law of the People's Republic of China, Presidential Order No. 58 (October 17, 2020, effective December 1, 2020) Source: Full Text: China's Export Controls, State Council Information Office white paper (December 29, 2021) Source: Regulations on Export Control of Dual-Use Items, State Council Decree No. 792 (October 19, 2024, effective December 1, 2024) Source: Statement on National Implementation Measures — Export Control Regime, Ministry of Foreign Affairs (August 20, 2003) Source: MOFCOM Spokesperson's Remarks on Export Control Measures Targeting Japan (March 13, 2026) Source: China tightens control over dual-use items export to US, State Council Information Office (December 4, 2024)

China's Export Control Law (Presidential Order No. 58, effective December 1, 2020) establishes both administrative and criminal penalties for export-control violations. Administrative enforcement authority resides with the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GACC); the Ministry of Public Security investigates criminal cases. The law contemplates fines up to RMB 5 million (approximately USD 700,000) or ten to twenty times illegal turnover for the most serious administrative violations, plus criminal imprisonment for smuggling-related offenses.

## Administrative penalties: the six-tier structure

The Export Control Law sets forth six categories of administrative violations in Articles 34–38. Fines are graduated by illegal turnover (the value of the unlawful transaction) and severity. The penalty structures are:

1. Exporting controlled items without approval; exporting beyond the scope of a license; or exporting prohibited items (Art. 34)

An exporter commits a violation if it (a) exports any controlled item without approval, (b) exports any controlled item beyond the approved scope specified in the export license, or (c) exports any controlled item that is prohibited from being exported. MOFCOM shall order the violation to cease, confiscate any illegal income, and impose:

• A fine of five to ten times illegal turnover if illegal turnover exceeds RMB 500,000, or
• A fine of RMB 500,000 to RMB 5 million if there is no illegal turnover or illegal turnover is less than RMB 500,000.

In serious cases, MOFCOM may order the exporter to suspend business for rectification and may revoke the exporter's qualification to export the relevant controlled items.

2. Obtaining a license by fraud, bribery, or other improper means (Art. 35)

Where an exporter obtains an export license by fraudulent or corrupt means, MOFCOM shall revoke the license, confiscate any illegal income, and impose:

• A fine of five to ten times illegal turnover if illegal turnover exceeds RMB 200,000, or
• A fine of RMB 200,000 to RMB 2 million if there is no illegal turnover or illegal turnover is less than RMB 200,000.

3. Forging, falsifying, purchasing, or selling export licenses (Art. 35)

MOFCOM shall confiscate any illegal income and impose:

• A fine of five to ten times illegal turnover if illegal turnover exceeds RMB 50,000, or
• A fine of RMB 50,000 to RMB 500,000 if there is no illegal turnover or illegal turnover is less than RMB 50,000.

4. Knowingly providing services to an export-control violator (Art. 36)

Any person who provides agency, shipping, delivery, customs-clearance, third-party e-commerce platform, financial, or other services to an exporter knowing that the exporter is engaged in export-control violations is subject to a warning, order to cease the violation, confiscation of illegal income, and:

• A fine of three to five times illegal turnover if illegal turnover exceeds RMB 100,000, or
• A fine of RMB 100,000 to RMB 500,000 if there is no illegal turnover or illegal turnover is less than RMB 100,000.

5. Trading with entities on the Restricted List (Art. 37)

An exporter that enters into a transaction with an importer or end user on the Restricted List (also called the Control List, 管控名单) is subject to a warning, order to cease the violation, confiscation of illegal income, and:

• A fine of ten to twenty times illegal turnover if illegal turnover exceeds RMB 500,000, or
• A fine of RMB 500,000 to RMB 5 million if there is no illegal turnover or illegal turnover is less than RMB 500,000.

In serious cases, MOFCOM may order the exporter to suspend business for rectification and may revoke the exporter's qualification to export the relevant controlled items. This is the most severe administrative fine tier, reflecting the gravity of willfully supplying entities that have violated end-use commitments or pose WMD-proliferation risks.

6. Refusing or obstructing regulatory inspection (Art. 38)

An exporter that refuses or obstructs a regulatory inspection is subject to a warning and a fine of RMB 100,000 to RMB 300,000. In serious cases, MOFCOM may order the exporter to suspend business for rectification and may revoke the exporter's qualification to export the relevant controlled items.

## Five-year licensing ban for penalized exporters (Art. 39)

Article 39 of the Export Control Law provides that for a period of five years from the date of punishment under Articles 34–38, MOFCOM shall not accept any export-license application from the penalized exporter and shall not allow any person directly responsible for the violation to engage in export activities. This five-year ban applies in addition to the fine, confiscation, and any business suspension or revocation of export qualification.

## Criminal penalties: smuggling prohibited export items (Art. 43)

Article 43 of the Export Control Law provides that any person who violates the provisions of this Law and exports controlled items prohibited by China, or exports controlled items without a license, shall be investigated for criminal responsibility according to law. The predicate criminal offense is smuggling goods prohibited from export under Article 151 of the Criminal Law of the People's Republic of China, as amended on February 28, 2009.

Article 151 (third paragraph) of the Criminal Law states:

> "Any person who smuggles other goods or articles prohibited from import or export by the State, such as precious and rare species of plants and the products thereof, shall be sentenced to a fixed term of imprisonment of not more than five years or criminal detention, and be concurrently imposed with a fine, or shall be subject to a fine alone; if the circumstances are serious, the offender shall be sentenced to a fixed term of imprisonment of not less than five years and be concurrently imposed with a fine."

The Criminal Law does not define "serious circumstances" for purposes of the five-year minimum sentence. Unable to confirm from the primary-source text or authoritative judicial interpretation the specific weight, value, or other thresholds that distinguish baseline from aggravated smuggling of prohibited export items as of 2026-06-01.

Where a unit (legal entity) commits the smuggling offense, the Criminal Law provides that the unit shall be fined and the persons who are directly in charge and other persons who are directly responsible for the crime shall be individually subject to imprisonment in accordance with the penalty tiers above. The Criminal Law does not specify the maximum unit fine for smuggling violations.

## Division of enforcement authority: MOFCOM and GACC

The State Council white paper China's Export Controls (December 29, 2021) states that MOFCOM and other relevant State Council departments are responsible for enforcement of export-control laws and regulations and that GACC enforces export-control compliance at the border during customs declaration and clearance. Both MOFCOM and GACC may impose the administrative penalties set forth in Articles 34–38 of the Export Control Law within their respective enforcement scopes.

The Export Control Law does not allocate enforcement authority between MOFCOM and GACC by violation type. In practice, GACC administers penalties for incorrect customs declarations and classification errors detected during export clearance at ports, while MOFCOM's enforcement authority encompasses licensing decisions, entity-list designations (Watch List and Restricted List), and investigation of broader compliance failures. When MOFCOM conducts investigations and imposes penalties, the fines may be significantly higher than typical border-inspection penalties because MOFCOM has full statutory authority to apply the ten-to-twenty-times illegal-turnover multiplier under Article 37 for prohibited end-user transactions.

## Mitigating factors: voluntary disclosure and compliance systems

Article 39 of the Regulations on Export Control of Dual-Use Items (State Council Decree No. 792, effective December 1, 2024) provides that exporters who voluntarily report export-control violations and actively take corrective measures may be given a mitigated or reduced administrative penalty in accordance with law. The Regulations do not specify the criteria for determining whether a disclosure is voluntary or whether corrective measures are adequate; MOFCOM retains discretion to evaluate each case.

An effective internal compliance system is a recognized mitigating factor. MOFCOM's Guiding Opinions on Establishing an Internal Compliance Mechanism for Export Control by Exporters of Dual-Use Items (April 28, 2021) encourages exporters to establish compliance frameworks covering item classification, end-user and end-use verification, license-application procedures, employee training, and self-audit. Exporters that have established such systems and take timely remedial measures after discovering a violation may cite the system as evidence supporting a request for mitigated penalties. The same compliance-system requirement is a condition of eligibility for general licenses under Article 17 of the 2024 Regulations.

## Extraterritorial application (Art. 44) and re-export controls (Art. 45)

Article 44 of the Export Control Law provides that any organization or individual outside the territory of the People's Republic of China that violates the provisions of the Export Control Law in relation to administration of export control, endangers the national security and national interests of the PRC, or hinders the performance of nonproliferation or other international obligations is subject to investigation and legal liability in accordance with the law. The law does not specify what enforcement mechanisms, procedural rules, or penalties apply to foreign organizations and individuals. China has not published enforcement decisions against foreign parties under Article 44 as of June 2026.

Article 45 confirms that the re-export of any controlled items is governed by the applicable provisions of the Export Control Law. MOFCOM's December 3, 2024 announcement on gallium, germanium, antimony, graphite, and superhard materials states that "any organization or individual from any country or region that, in violation of the above provisions, transfers or provides relevant dual-use items originating in the People's Republic of China to the United States will be held legally responsible." This language signals that China asserts jurisdiction over non-Chinese parties that re-export Chinese-origin controlled items in violation of Chinese export-control measures, but the practical enforcement reach, available remedies, and procedural mechanisms for imposing liability on foreign parties remain unconfirmed.

## Whistleblower protection (Art. 31)

Article 31 of the Export Control Law provides that any organization or individual has the right to report any suspected violation of the provisions of the law to MOFCOM or other competent export-control authorities. The authorities shall handle the report upon receipt in a lawful and timely manner and keep the identity of the reporting person confidential.

Source: Export Control Law of the People's Republic of China, Presidential Order No. 58 (October 17, 2020, effective December 1, 2020), Articles 31, 34–39, 43–45 Source: Criminal Law of the People's Republic of China, Article 151 (as amended February 28, 2009) Source: Full Text: China's Export Controls, State Council Information Office white paper (December 29, 2021) Source: Regulations on Export Control of Dual-Use Items, State Council Decree No. 792 (October 19, 2024, effective December 1, 2024), Articles 17, 39